United Breweries Ltd. — Interim / Quarterly Report 2021

Jan 29, 2021

January 29, 2021

1. The Secretary-Listing Department 2. The Manager-Listing Department Mumbai - 400 023 Mumbai – 400 051 Scrip Code: 532478 Symbol: UBL

BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot. C/1, G Bl. Dalal Street, Fort Bandra-Kurla Complex, Bandra (East)

Dear Sir,

Sub: Intimation of Financial Results Earning call

This has reference to Regulation 30(6) read with Para-A of Part-A of Schedule-III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Regulations').

In accordance with the said Regulation(s), as Quarter3FY21 Financial Results Earnings call is on Friday, January 29, 2021 @ 02:00 p.m. IST, by way of conference call hosted by Investec India.

Investor presentation is attached. Unaudited Financial Results are already uploaded on the website of Bombay Stock Exchange and National Stock Exchange of India Limited.

Thanking You

Yours faithfully, For UNITED BREWERIES LIMITED

GOVIND IYENGAR Senior Vice President – Legal & Company Secretary

Encl: As above.

Q3FY21 Financial Results Earnings Call Friday, January 29, 2021, at 2:00 PM IST

Register

Investec India is pleased to host the management of United Breweries Ltd. for a conference call with investors and analysts to discuss their

Q3FY21 Financial Results Earnings Call Friday, January 29, 2021, at 2:00 PM IST with

Mr. Berend Odink, CFO

Mr. PA Poonacha, Finance and Investor Relations

Access Numbers

Primary Numbers +91 22 6280 1245 / +91 22 7115 8146 Local Access (Available all over India) +91 70456 71221

International Toll Free Hong Kong 800964448 Singapore 8001012045 UK 08081011573 USA 18667462133

Harit Kapoor (Tel. 022 6849 7493) Bhakti Thacker (Tel. 022 6849 7489)

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Investor Presentation Quarter ended Dec 2020

Disclaimer

This presentation contains forward-looking statements with regard to the financial position and results of UBL's activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Many of these risks and uncertainties relate to factors that are beyond UBL's ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, changes in consumer preferences, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in UBL's publicly filed annual reports.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. UBL does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

Market share estimates contained in this presentation are based on outside sources such as specialized research institutes in combination with management estimates.

Key Results Highlights

• o Continued volume recovery in Q3 over previous quarters with Q3 volume vs PY at -15% (Q2 -48% vs Q1 -77%).
• o Strong underlying EBITDA margin improvement to 15.6% (excl. non recurring items) vs 15.4% prior year, driven by improvement in Gross Profit margin (119 bps), and cost control.
• o Robust FOCF and active cash management resulted in net cash position of INR 97 Cr. per quarter end.
• o Per end December various States lifted a number of trade restrictions that were still in place. This is expected to support further demand recovery.

Q3 20/21 Results

Unaudited QTD Results (standalone)
Data in Rs. Cr.
	Dec-20	Dec-19	Change (%)
Net Sales	1,290	1,453	-11%
COGS	(595)	(688)	-13%
Gross Profit	695	766	-9%
Employee expenses	(124)	(125)	-1%
Other expenses	(397)	(419)	-5%
Other income	5	3	34%
EBITDA	178	224	-21%
Depreciation	(58)	(74)	-21%
EBIT	120	151	-20%
Finance costs	(5)	(10)	-46%
PBT before except.items	115	141	-18%
Exceptional item	55	-	-
Profit before tax	170	141	21%
Tax	(44)	(34)	26%
Profit after tax	126	106	19%

As % of Net Sales	Dec-20	Dec-19	Change (bps)
Gross Profit	53.9%	52.7%	119
EBITDA	13.8%	15.4%	(162)
EBIT	9.3%	10.4%	(105)
PBT before except.items	8.9%	9.7%	(78)
Profit before tax	13.2%	9.7%	349
Profit after tax	9.8%	7.3%	248

YTD 20/21 Results

Unaudited YTD December 20 Results (standalone)
Data in Rs. Cr.
	Dec-20	Dec-19	Change (%)
Net Sales	2,697	5,080	-47%
COGS	(1,295) (2,461)		-47%
Gross Profit	1,402	2,619	-46%
Employee expenses	(349)	(372)	-6%
Other expenses		(935) (1,505)	-38%
Other income	39	9	354%
EBITDA	157	751	-79%
Depreciation	(170)	(212)	-20%
EBIT	(13)	539	-102%
Finance costs	(18)	(26)	-30%
PBT before except.items	(31)	513	-106%
Exceptional item	55	-	-
Profit before tax	24	513	-95%
Tax	(8)	(127)	-94%
Profit after tax	16	386	-96%

As % of Net Sales	Dec-20	Dec-19	Change (bps)
Gross Profit	52.0%	51.6%	42
EBITDA	5.8%	14.8%	(896)
EBIT	-0.5%	10.6%	(1,108)
PBT before except.items	-1.2%	10.1%	(1,125)
Profit before tax	0.9%	10.1%	(921)
Profit after tax	0.6%	7.6%	(700)

Regional volume performance vs PY

Volume Growth Total Company

(Q3, YTD) (-15%, -51%)

North (-21%, -46%)

o Balanced recovery in Q3 across most States

West (-11%, -46%)

o Continued recovery in all markets with Rest of Maharashtra ahead of national average

East (14%, -58%)

• o Growth across all main markets, except Orissa where on premise opened in January
• o Substantial growth in West Bengal on the back of revised excise policy leading to lower consumer prices

South (-18%, -54%)

• o Karnataka posted growth. Tamil Nadu volume flat, attached bars now open.
• o Telangana recovery below average. Permit rooms opened end of December
• o Kerala ahead of national average, on premise opened end of December

Positive price/mix mitigates volume impact

• o Lower volume in most markets (except Eastern India) driven by Covid-induced slowdown
• o Favorable price/mix variance driven by positive state & brand mix and price increases

Underlying margins showing recovery

• Gross profit decline driven by volume reduction, gross margin in Q3 up by 119 bps vs prior year driven by positive state mix and benign input costs.
• Q3 non recurring items include provisions for potential expiry of stocks/doubtful debtors (INR 23 Cr).

.

Outlook and summary

• Industry outlook continues to develop positively yet remains volatile depending amongst others on the future trajectory of the pandemic.
• The Company continues to actively review costs and focus on working capital management and capital investments to further strengthen the operational performance.
• UBL is well positioned to navigate the current circumstances with a leading market position, strong brand portfolio and robust balance sheet. The company continues to be optimistic about the long term growth drivers of the industry.